giełda papierów wartościowych w - gpwquarterly report of the giełda papierów wartościowych w...

Giełda Papierów Wartościowych w

Warszawie S.A. Group

Quarterly Report for Q1 2011

Warsaw, May 10, 2011

Quarterly Report of

the Giełda Papierów Wartościowych w Warszawie S.A. Group

for Q1 2011

2

Table of Contents

1. SELECTED OPERATING AND FINANCIAL DATA OF THE GROUP ...................... 3

1.1. Main parameters of the markets operated by the WSE .................................................................. 3

1.2. Selected financial data of the Group .............................................................................................. 5

2. INFORMATION ABOUT THE GROUP ............................................................................ 6

2.1. Background information about the Group...................................................................................... 6

2.2. Organisation of the Group and the effect of changes in its structure ............................................. 6

2.3. Ownership structure ....................................................................................................................... 7

3. GENERATED FINANCIAL RESULTS AND THEIR KEY DRIVERS IN Q1 2011 ..... 9

3.1. Summary of quarterly results ......................................................................................................... 9

3.2. Revenues ...................................................................................................................................... 10

3.3. Operating expenses ...................................................................................................................... 15

3.4. Other income and expenses .......................................................................................................... 16

3.5. Financial income and expenses .................................................................................................... 16

3.6. Share of profit of associates ......................................................................................................... 16

3.7. Income tax .................................................................................................................................... 16

3.8. Group’s balance sheet structure ................................................................................................... 16

3.9. Cash flows .................................................................................................................................... 17

3.10. Capital expenditure ...................................................................................................................... 18

3.11. Seasonality and cyclicality of operations ..................................................................................... 18

3.12. Key factors impacting results in the horizon of at least one quarter ............................................ 18

3.13. Other significant information ....................................................................................................... 19

4. QUARTERLY FINANCIAL INFORMATION OF THE WARSAW STOCK

EXCHANGE FOR Q1 2011 ................................................................................................ 21

APPENDIX: CONDENSED CONSOLIDATED INTERIM FINANCIAL

STATEMENTS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2011

AND THE AUDITOR’S REVIEW REPORT ................................................................... 25

Quarterly Report of


for Q1 2011

3

1. Selected operating and financial data of the Group

1.1. Main parameters of the markets operated by the WSE1

1 As of 2011, turnover value data are presented by the WSE on a single-counted basis; this methodology is followed in this Report unless

indicated otherwise.

Source: Company Source: Company

Source: Company Source: Company * - includes transfers from NewConnect


Source: Company * - including session and block trades Source: Company * - including session and block trades

354 360 361 373 373

0

50

100

150

200

250

300

350

400

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Number of domestic companies - Main Market

24 23 23

2729

0

5

10

15

20

25

30

35

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Number of foreign companies - Main Market

450 450

519543 561

0

100

200

300

400

500

600

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Capitalisation of domestic companies - Main Market

(PLN bn)

2

9

4

19

10

0

3

6

9

12

15

18

21

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Number of new listings - Main Market*

45.6

53.849.6

57.963.9

0

10

20

30

40

50

60

70

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Session turnover (shares) - Main Market (PLN bn)

6.16.9

2.7

11.8

3.9

0

2

4

6

8

10

12

14

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Block trades turnover (shares) - Main Market (PLN bn)

3.88 3.93

3.07 3.13

3.71

0

1

2

3

4

5

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Turnover volume - futures contracts (m contracts)*

176.7164.2

142.7

191.5

272.5

0

50

100

150

200

250

300

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Turnover volume - options ('000 contracts)*

Quarterly Report of


for Q1 2011

4

Source: KDPW Source: Company

Source: CompanyŹródło: BondSpot


Source: Company Source: Company * - including session and block trades

* - treasury bonds and bills

** - sum of opening transaction and closing transaction

1 140.41

1 373.33 1 398.621 477.42 1 488.79

0

200

400

600

800

1 000

1 200

1 400

1 600

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Number of investment accounts (thousand)

6.15%

-7.0%

14.84%

4.98%2.61%

-10%

-5%

0%

5%

10%

15%

20%

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

WIG index return rate

0.13

12.88

0.332.36

0.50

17.85

1.00

2.57 1.28

1.18

0

5

10

15

20

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Value of public offers - Main Market and NewConnect

(PLN bn)

SPO IPO

120136

164

185

220

0

50

100

150

200

250

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Number of companies - NewConnect

14

18

29

25

38

0

5

10

15

20

25

30

35

40

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Number of new listings - NewConnect

3 335 3 134

4 500

5 1385 452

0

1 000

2 000

3 000

4 000

5 000

6 000

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Capitalisation - NewConnect (PLN m)

481.6

197.7

480.9

686.9

561.3

0

100

200

300

400

500

600

700

800

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Turnover - NewConnect (PLN m)*

27.8 30.5 41.3 35.9 72.135.2 20.2

44.288.5

176.2

0

50

100

150

200

250

300

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Turnover -

Treasury BondSpot Poland (PLN bn)*

Repo market** Cash market

Quarterly Report of


for Q1 2011

5

1.2. Selected financial data of the Group

2011 2010 2011 2010

Revenues 69,164 53,983 17,517 13,521

Trading 54,786 41,053 13,876 10,283

Listing 5,296 4,589 1,341 1,149

Information services 8,214 7,899 2,080 1,979

Other revenues 868 442 220 111

Operating expenses 31,083 28,444 7,873 7,125

Other income 608 216 154 54

Other expenses 172 42 44 11

Operating profit 38,517 25,713 9,755 6,440

Financial income 2,596 3,435 657 860

Financial expenses 30 1,109 8 278

Share of profit of associates 5,438 4,359 1,377 1,092

Profit before income tax 46,521 32,398 11,783 8,115

Income tax expense 7,921 5,790 2,006 1,450

Profit for the period 38,600 26,608 9,776 6,665

Basic / diluted earnings per share[2]

(in PLN) 0.92 0.63 0.23 0.16

EBITDA[3] 47,934 34,060 12,140 8,531

March 31,

2011

December

31, 2010

March 31,

2011

December

31, 2010

Non-current assets 395,870 337,664 98,674 87,428

Property and equipment 117,197 119,516 29,212 30,945

Investment in associates 144,073 138,956 35,911 35,978

Available-for-sale financial assets 66,338 11,829 16,535 3,063

Other 68,262 67,363 17,015 17,442

Current assets 210,255 220,862 52,408 57,186

Available-for-sale financial assets 31,056 30,787 7,741 7,971

Cash and cash equivalents 131,755 107,600 32,841 27,860

Other 47,444 82,475 11,826 21,354

TOTAL ASSETS 606,125 558,526 151,082 144,613

Equity 562,841 524,726 140,293 135,862

Non-current liabilities 3,649 4,814 910 1,246

Current liabilities 39,635 28,986 9,879 7,505

TOTAL EQUITY AND LIABILITIES 606,125 558,526 151,082 144,613

2011 2010

69.3% 63.1%

55.7% 47.6%

19.2% n/a

0.0% 0.0%

[1] Based on the quarterly arithmetic mean of EUR/PLN exchange rates quoted by the National Bank of Poland (respectively: 1 EUR = 3,9483 PLN in 2011 and 1 EUR = 3.9924

PLN in 2010).

Consolidated statement of comprehensive income under IFRS

For the three-month period ended March 31,

PLN'000 EUR'000[1]

[2] Calculated based on the net profit attributable to shareholders of the parent company

[3] EBITDA = operating profit + share of profit of associates + depreciation and amortisation

Consolidated statement of financial position under IFRS

As at

PLN'000 EUR'000[1]

Debt-to-equity ratio (Interest-bearing liabilities/Equity)

[1] Based on mean EUR/PLN exchange rates quoted by the National Bank of Poland on 31.03.2011 (1 EUR = 4.0119 PLN) and 31.03.2010 (1 EUR = 3.8622 PLN).

Selected financial ratios of the Group

As at March 31,

EBITDA margin (EBITDA/Revenues)

Operating profit margin (Operating profit/Revenues)

Return on equity (ROE) (Profit for the last 12 months/Average equity at the beginning and end of the year)

____________

Source: Condensed Consolidated Interim Financial Statements, Company

Quarterly Report of


for Q1 2011

6

2. Information about the Group

2.1. Background information about the Group

The parent entity of the Giełda Papierów Wartościowych w Warszawie S.A. Group (“the Group”) is Giełda

Papierów Wartościowych w Warszawie Spółka Akcyjna (“the Warsaw Stock Exchange”, “the Exchange”,

“WSE”, “the Company” or “the parent entity”) with its registered office in Warsaw, ul. Książęca 4.

The WSE the largest national stock exchange in CEE and one of the fastest-growing exchanges in Europe. The

WSE offers a broad range of products and services on its markets of equities, derivatives fixed income and

structured products and information services. The WSE is one of Poland’s most recognisable financial

institutions globally.

The WSE and the subsidiaries of the Group have three main business lines:

Listing, encompassing the introduction, admission to trading and listing of securities on markets

organised and operated by the Group,

Trading, encompassing the trading in all financial instruments and commodities admitted and

introduced to trading on markets organised and operated by the Group,

Information services, encompassing the provision of stock exchange data to users and licenses

for indices.

In its business in all these three segments, the Group organises and operates trading on the following markets:

Main Market (trade in equities, equity-related and other cash instruments, derivatives),

NewConnect (trade in equities and equity-related instruments of small and medium-sized

enterprises),

Catalyst (trade in corporate, municipal, co-operative, Treasury and mortgage bonds operated by

the WSE and BondSpot),

Treasury BondSpot Poland (wholesale trade in Treasury bonds operated by BondSpot),

poee WSE Energy Market (trade in electricity).

Basic information about the parent entity:

Name and legal status: ................................ Giełda Papierów Wartościowych w Warszawie Spółka Akcyjna

Abbreviated name: ...................................... Giełda Papierów Wartościowych w Warszawie S.A.

Registered office and address: .................... ul. Książęca 4, 00-498 Warsaw, Poland

Telephone number: ..................................... (+48 22) 628 32 32

Telefax number: .......................................... (+48 22) 22 628 17 54, (+48) 22 537 77 90

Website: ...................................................... www.gpw.pl

E-mail: ........................................................ [email protected]

KRS (registry number): ............................... 0000082312

REGON (statistical number): ...................... 012021984

NIP (tax identification number): ................. 526-02-50-972

2.2. Organisation of the Group and the effect of changes in its structure

As at March 31, 2011, the Warsaw Stock Exchange (the parent entity) and its three subsidiaries comprised the

Warsaw Stock Exchange Group. In addition, the WSE held shares in three associates.

http://www.gpw.pl/

mailto:[email protected]

Quarterly Report of


for Q1 2011

7

Warsaw Stock Exchange subsidiaries and associates as at March 31, 2011 and the WSE’s stake

in their share capital

____________

Source: Company

The subsidiaries are consolidated using acquisition accounting as of the date of taking control while the

investment in associates is recognised using equity accounting.

In addition to the subsidiaries and associates, the parent entity holds shares in other companies outside the Group

including:

Towarowa Giełda Energii S.A.,

S.C. Sibex - Sibiu Stock Exchange S.A.

Since 2008 the Group has operated a representative office in Kiev (Ukraine), whose operations focus on

promoting the WSE amongst the Ukrainian investors, issuers and financial intermediaries. The Representative

Office has no separate legal personality and does not carry on any profit earning independent business

operations. In all its activities, the Representative Office acts on behalf and for the WSE to the extent stipulated

in the Representative Office’s Statutes and powers of attorney granted by the WSE Management Board, always

in compliance with the laws of Ukraine.

The Group does not hold any branches or establishments.

The structure of the Group did not change in Q1 2011 through any merger, acquisition or sale of subsidiaries,

long-term investments, split, restructuring or discontinued operations.

2.3. Ownership structure

As at May 10, 2011, the share capital of the Warsaw Stock Exchange was divided into 15,087,470 Series A

preferred registered shares (one share gives two votes) and 26,884,530 Series B ordinary bearer shares.

As at May 10, 2011, according to the Company’s best knowledge, the State Treasury holds 14,688,470 Series A

preferred registered shares (one share gives two votes), which represent 35.0% of total shares and give

29,376,940 votes, which represents 51.5% of the total vote.

WSEInfoEngine S. A. (100%)

BondSpot S.A . (92.47%)

Subsidiaries Associates

KDPW S.A. (33.33%)

INNEX PJSC (24.98%)

Centrum Giełdowe S.A. (24.79%)

GIEŁDA PAPIERÓW WARTOŚCIOWYCH W WARSZAWIE S.A.

Instytut Rynku Kapitałowego –

WSE Research S.A.

(100%)

Quarterly Report of


for Q1 2011

8

According to the Company’s best knowledge, as at the date of publication of this Report, no shareholders other

than the State Treasury held directly or indirectly at least 5% of the total vote in the parent entity. The ownership

structure of material blocks of shares did not change since the publication of the previous periodic report.

The tables below present WSE shares and allotment certificates held by the Company’s and the Group’s

supervising and managing persons.

Number of shares heldNumber of allotment

certificates held

Ludwik Sobolewski 25 0

Lidia Adamska 0 0

Beata Jarosz 0 0

Adam Maciejewski 0 0

Number of shares heldNumber of allotment

certificates held

Leszek Pawłowicz 0 0

Paweł Graniewski 0 0

Jacek Lewandowski 0 0

Mateusz Rodzynkiewicz 0 0

Sebastian Skuza 0 0

Maria Sierpińska 0 0

Marek Wierzbowski 0 0

WSE shares and allotment certificates held by the Company's and the Group's

managing persons as at May 10, 2011

WSE shares and allotment certificates held by the Company's and the Group's

supervising persons as at May 10, 2011

____________

Source: Company

The number of these financial instruments held by the Company’s and the Group’s supervising and managing

persons did not change since the publication of the previous periodic report.

Quarterly Report of


for Q1 2011

9

3. Generated financial results and their key drivers in Q1 2011

3.1. Summary of quarterly results

A strong increase in revenues combined with a relatively lower increase in expenses of the Group in Q1 2011

produced an operating profit amounting to PLN 38.5 million, up by 128.2% (PLN 21.6 million) compared to Q4

2010 and up by 49.8% (PLN 12.8 million) compared to Q1 2010. The profit before income tax and the net profit

of the Group in Q1 2011 were significantly higher compared to Q1 2010 and Q4 2010. The profit before income

tax amounted to PLN 46.5 million and the profit for the period amounted to PLN 38.6 million. The main drivers

of improvement in the results of the WSE included a high income from tenders for significant blocks of shares

and a high volume of trading in equities and derivatives on the WSE as well as lower operating expenses

compared to Q4 2010, when privatisation-related expenses were incurred.

2011

Q 1 Q 4 Q 3 Q 2 Q 1

Revenues 69,164 60,181 53,971 57,494 53,983

Trading 54,786 43,850 40,687 43,193 41,053

Shares and other equity instruments 39,931 31,648 28,271 28,672 26,848

Derivative instruments 10,314 8,726 8,996 11,235 11,123

Other fees paid by market participants 1,149 1,146 1,101 1,242 1,009

Fixed-income securities 3,125 2,265 2,275 2,003 2,038

Other cash instruments 267 65 43 42 35

Listing 5,296 5,507 4,591 5,536 4,589

Annual listing fee 4,068 3,704 3,634 3,643 3,599

Introduction and admission fees, other fees 1,228 1,804 958 1,893 990

Information services 8,214 8,621 7,968 8,082 7,899

Other revenues 868 2,203 725 683 442

O perating expenses 31,083 42,848 30,597 30,452 28,444

Depreciation and amortisation 3,979 4,370 4,139 4,184 3,988

Payroll 9,324 11,213 8,169 8,373 7,471

Other employee costs 2,853 2,235 2,039 2,127 2,295

Rent and other maintenance fees 1,678 1,568 1,662 1,534 1,515

Fees and taxes 4,195 4,026 3,587 4,220 4,212

including: fees paid to KNF 3,891 3,647 3,419 3,960 3,960

External services 7,313 17,259 9,318 8,203 7,321

Other operating expenses 1,741 2,176 1,683 1,811 1,642

Other income 608 656 83 184 216

Other expenses 172 1,113 1,382 140 42

O perating profit 38,517 16,876 22,075 27,086 25,713

Net financial income 2,566 2,272 886 3,940 2,326

Share of profit of associates 5,438 2,890 4,434 2,487 4,359

Profit before income tax 46,521 22,038 27,395 33,513 32,398

Income tax expense 7,921 3,845 5,187 5,696 5,790

Profit for the period 38,600 18,193 22,208 27,817 26,608

2010

The Group's statement of comprehensive income by quarter, 2010-2011

PLN'000

_____________

Source: Condensed Consolidated Interim Financial Statements, Company; Q1 2011, Q1 and Q3 2010 data reviewed or

audited by the auditor

Quarterly Report of


for Q1 2011

10

3.2. Revenues

The Group has four revenue-generating segments:

trading;

listing;

information services;

other revenues.

Trading revenue includes fees paid by market participants in respect of:

transactions on markets of equities and equity-related instruments;

transactions in derivative instruments;

transactions in fixed-income instruments;

transactions in other cash instruments;

other fees paid by market participants.

Revenues from transactions in equities and equity-related instruments are the Group’s main source of trading

revenues and its main source of sales revenues in general. Trading on the Main Market generates almost all

revenues from transactions in equities.

Revenues from transactions in derivative instruments are the second biggest source of trading revenues.

Transactions in WIG20 index futures contracts account for the majority of revenues from transactions in

derivatives.

Revenues from transactions in fixed-income instruments are generated by the fixed-income instrument trading

system Catalyst, which is still at an early phase of growth, as well as Treasury BondSpot Poland operated by the

WSE’s subsidiary BondSpot S.A.

Fees for transactions in other cash instruments include fees for transactions in structured products, investment

certificates, ETFs, as well as fees for cash transactions in electricity on poee WSE Energy Market.

Listing revenues include two main segments:

one-off fees paid by issuers for introduction and admission of new shares and other instruments to

trading;

periodic (annual) listing fees.

Revenues from information services mainly include fees paid by data vendors for real-time market data as well

as historical and statistical data. These fees include fixed annual fees and monthly fees based on the data

vendor’s number of subscribers. Fees are paid in the euro by foreign data vendors and in the zloty by local data

vendors.

The Group’s other revenues mainly include revenues of the subsidiaries WSEInfoEngine S.A and Instytut

Rynku Kapitałowego – WSE Research S.A. as well as the WSE’s revenues from educational services, office

lease and advertising services.

The Group’s sales revenues amounted to PLN 69.2 million in Q1 2011, an increase of 14.9%, or PLN 9.0

million, compared to Q4 2010 and an increase of 28.1%, or PLN 15.2 million, compared to Q1 2010, mainly

owing to an increase of trading revenues by PLN 13.7 million and an increase of listing revenues by PLN 0.7

million.

Quarterly Report of


for Q1 2011

11

March 31,

2011%

December

31, 2010%

March 31,

2010%

Trading revenue 54,786 79.2% 43,850 72.9% 41,053 76.0%

Shares and other equity instruments 39,931 57.7% 31,648 52.6% 26,848 49.7%

Derivative instruments 10,314 14.9% 8,726 14.5% 11,123 20.6%

Other fees paid by market participants 1,149 1.7% 1,146 1.9% 1,009 1.9%

Fixed-income securities 3,125 4.5% 2,265 3.8% 2,038 3.8%

Other cash instruments 267 0.4% 65 0.1% 35 0.1%

Listing revenue 5,296 7.7% 5,507 9.2% 4,589 8.5%

Annual listing fee 4,068 5.9% 3,704 6.2% 3,599 6.7%

Introduction and admission fees, other fees 1,228 1.8% 1,804 3.0% 990 1.8%

Information services revenue 8,214 11.9% 8,621 14.3% 7,899 14.6%

Other revenues 868 1.3% 2,203 3.7% 442 0.8%

Total 69,164 100.0% 60,181 100.0% 53,983 100.0%

For the three-month period ended

The Group's revenues in Q1 2011 and Q4 and Q1 2010 by segment

PLN'000, %

____________


The Group generates sales revenues both in the Polish zloty and in the euro. Revenues earned in the Polish zloty

accounted for around 74%-80% of total revenues in Q1 2010, Q4 2010 and Q1 2011. Revenues in the euro are

earned in all four business segments. The Group incurs currency exchange risk mainly with regard to income

from information services.

March 31,

2011%

December

31, 2010%

March 31,

2010%

Domestic revenues 51,141 73.9% 47,594 79.1% 42,316 78.4%

Foreign revenues 18,023 26.1% 12,587 20.9% 11,667 21.6%

Total 69,164 100.0% 60,181 100.0% 53,983 100.0%

Revenues from foreign and domestic customers in Q1 2011 and Q4 and Q1 2010

PLN'000, %


____________


The average EUR/PLN exchange rate was 3.95 EUR/PLN in Q1 2011, 3.97 EUR/PLN in Q4 2010 and 3.99 EUR/PLN in Q1

2010.

Trading

Trading revenues of the Group in Q1 2011 amounted to PLN 54.8 million, an increase of 24.9% compared to Q4

2010 and an increase of 33.5% compared to Q1 2010. The share of trading revenues in the Group’s total sales

revenues increased to 79.2% in Q1 2011 as compared to 72.9% in Q4 2010 and 76.0% in Q1 2010. The increase

resulted from a decrease of the share of listing revenues, revenues from information services and revenues from

trading in derivative instruments in the Group’s total revenues, and was mainly driven by increasing activity of

investors on the equities market.

The increase of trading revenues was possible among others due to market conditions and a higher session

turnover volume; as a result, the Group generated revenues from trading in equities and equity-related

instruments amounting to PLN 39.9 million in Q1 2011, an increase of 26.2%, or PLN 8.3 million, as compared

to PLN 31.6 million in Q4 2010 and an increase of 48.7%, or PLN 13.1 million, as compared to PLN 26.8

million in Q1 2010. The increase of revenues from trading in equities and equity-related instruments in Q1 2011

Quarterly Report of


for Q1 2011

12

was also driven by Bank Santander’s invitations to sell shares of Bank Zachodni WBK. The value of this

transaction was PLN 15.9 billion while the total revenues from tenders for significant blocks of shares amounted

to PLN 7.7 million in Q1 2011 as compared to PLN 0.1 million in Q4 2010 and PLN 0.3 million in Q1 2010.

Another driver of the increase of the revenues from transactions in equities in Q1 2011 was an increase of the

share of session transactions at the expense of block trades in total transactions in Q1 2011 as compared to Q4

2010 and Q1 2010. Due to the structure of the fees, block trades which have a higher average value than session

transactions generate lower average fees for the WSE. In 2011, transaction fees on NewConnect were

harmonised with Main Market fees, which resulted in an increase of trading revenues on NewConnect despite a

lower turnover in Q1 2011 comparing to Q4 2010.

The total value of Main Market equities trading (session and block trades) was PLN 67.8 billion in Q1 2011, a

decrease of 2.8% compared to Q4 2010 and an increase of 31.2% compared to Q1 2010. The average transaction

value in Q1 2011, calculated as the relation of value of trading and the number of orders in the Electronic Order

Book, was PLN 17.7 thousand, which was higher than in Q4 2010 (PLN 17.5 thousand) and Q1 2010 (PLN 15.8

thousand). The WIG20 index increased by 2.65% from 2,744.17 points at the end of 2010 to 2,816.96 points at

the end of Q1 2011. The WIG20 index increased by 4.93% in Q4 2010 and by 4.47% in Q1 2010. The total

volume of Main Market equities transactions in Q1 2011 decreased by 5.2% compared to Q4 2010 and by 6.4%

compared to Q1 2010 and amounted to 6.3 billion shares. The revenues from trading in equities and equity-

related instruments net of revenues from tenders for significant blocks of shares amounted to PLN 32.3 million

on Q1 2011, PLN 31.6 million in Q4 2010 and PLN 26.5 million in Q1 2010. The increase of these revenues

took place in spite of a decrease of total turnover in Q1 2011 due to a higher share of session trades in all

transactions.

Revenues of the Group from derivatives transactions amounted to PLN 10.3 million, an increase of 18.2%

compared to Q4 2010 and a decrease of 7.3% compared to Q1 2010. These results reflect the volatility of

volumes of WIG20 index futures contracts, which amounted to 3.5 million contracts in Q1 2011, 3.0 million

contracts in Q4 2010 and 3.8 million contracts in Q1 2010. Revenues from WIG20 futures contracts amounted to

more than 95% of the revenues of the Group from trading in derivative instruments in all these periods. The

share was 95.9% in Q1 2011.

Revenues of the Group from transactions in fixed-income instruments increased in Q1 2011, both compared to

Q4 2010 and Q1 2010. The revenues amounted to PLN 3.1 million in Q1 2011, an increase of 37.9% compared

to Q4 2010 and an increase of 53.3% compared to Q1 2010. This was primarily due to an increase of turnover on

Treasury BondSpot Poland (TBSP). The value of trading on TBSP was PLN 248.3 billion in Q1 2011 as

compared to PLN 124.4 billion in Q4 2010 and PLN 63.0 billion in Q1 2010. The historically high turnover in

Q1 2011 represented continuation of growth reported in 2010, especially in the repo/BSB segment. The key

growth drivers included the implementation of the Cash Driven Repo project in late 2009, repricing effective as

of 2010 which reduced transaction fees, as well as focused marketing activities. The revenues from TBSP did not

grow in proportion to the growth of turnover on the market due to the structure of the TBSP price list, which

includes flat-rate fees combined with a regressive structure of fees.

Revenues of the Group from transactions in other cash instruments increased in Q1 2011 both compared to Q4

2010 and Q1 2010. The revenues amounted to PLN 0.3 million in Q1 2011, more than quadruple the revenues in

Q4 2010 and over 7 times higher than in Q1 2010. The increase was mainly driven by the launch of poee WSE

Energy Market in late Q4 2010 and revenues generated on energy trading on the cash market.

Quarterly Report of


for Q1 2011

13

March 31,

2011

December

31, 2010

March 31,

2010

Trading revenue - shares and equity-related instruments (PLN million) 39.9 31.6 26.8

Total value of Main Market shares and equity-related transactions (PLN billion) 67.8 69.7 51.7

Total value of NewConnect shares and equity-related transactions (PLN billion) 0.6 0.7 0.5

Trading revenue - derivatives (PLN million) 10.3 8.7 11.1

Total volume of derivative transactions (millions of contracts) 4.0 3.3 4.1

Trading revenue - fixed-income instruments (PLN million) 3.1 2.3 2.0

Total value of fixed-income instrument transactions on Catalyst* (PLN billion) 0.3 0.5 0.4

Total value of fixed-income instrument transactions on Treasury BondSpot

Poland - conditional transactions (PLN billion)176.2 88.5 35.2

Total value of fixed-income instrument transactions on Treasury BondSpot

Poland - cash market transactions (PLN billion)72.1 35.9 27.8

* including Treasury instruments listed on the W SE and BondSpot


Revenues from trading in shares, equity-related instruments, derivatives and fixed-income securities as well as

data regarding the value and volume of transactions in Q1 2011 and Q4 and Q1 2010

____________


Revenues from other fees paid by the Group’s market participants amounted to PLN 1.1 million in Q1 2011 compared to

PLN 1.1 million in Q4 2010 and PLN 1.0 million in Q1 2010.

Listing

Listing revenues in Q1 2011 amounted to PLN 5.3 million, a decrease of 3.8% compared to Q4 2010 and an

increase of 15.4% compared to Q1 2010. The main sources of listing revenues were the Main Market and

NewConnect. The total listing revenues from these two markets in Q1 2011 amounted to PLN 5.1 million as

compared to PLN 5.4 million in Q4 2010 and PLN 4.6 million in Q1 2010.

Annual fees were PLN 4.1 million in Q1 2011, an increase of 9.8%, or PLN 0.4 million, as compared to PLN 3.7

million in Q4 2010, and an increase of 13.0%, or PLN 0.5 million, as compared to PLN 3.6 million in Q1 2010,

which reflected higher capitalisation at the end of 2010 as compared to the end of 2009. Fees for admission and

introduction of securities as well as other fees amounted to PLN 1.2 million in Q1 2011, a decrease of PLN 0.6

million, or 31.9%, compared to Q4 2010, and an increase of PLN 0.2 million, or 24.1%, compared to Q1 2010,

reflecting a change in the number and value of debut listings on the Main Market and NewConnect. In Q1 2011,

10 companies debuted on the Main Market and the total value of IPOs and secondary offers was PLN 1.4 billion,

as compared to 19 debuts worth PLN 3.5 billion in Q4 2010 and 2 debuts worth PLN 17.9 billion in Q1 2010 (a

secondary issue of UniCredit shares of PLN 16.1 billion took place in Q1 2010). In Q1 2011, 38 companies

debuted on NewConnect and the total value of IPOs and secondary offers was PLN 254 million, as compared to

25 debuts worth PLN 99 million in Q4 2010 and 14 debuts worth PLN 47 million in Q1 2010.

At the end of Q1 2011, 622 companies were listed on the WSE equities markets, including 402 listings on the

Main Market and 220 listings on NewConnect. The total capitalisation of companies on both markets was PLN

852.6 billion at the end of Q1 2011, PLN 801.6 billion at the end of 2010, and PLN 760.3 billion at the end of

Q1 2010. The capitalisation of domestic companies was PLN 566.3 billion at the end of Q1 2011, PLN 547.6

billion at the end of 2010, and PLN 452.8 billion at the end of Q1 2010.

The number of issuers on Catalyst grew dynamically in that period. At the end of Q1 2011, the Catalyst segment

operated by the WSE listed 129 series of fixed-income instruments (including 39 Treasury bonds, 49 corporate

bonds, 14 co-operative bonds, 21 municipal bonds and 6 mortgage bonds) while the segment operated by

BondSpot listed 96 series of fixed-income instruments (including 39 Treasury bonds, 32 corporate bonds, 8

municipal bonds and 17 mortgage bonds). This represented a significant improvement compared to the end of

Quarterly Report of


for Q1 2011

14

Q1 2010. At the end of Q1 2010, the Catalyst segment operated by the WSE listed 54 series of fixed-income

instruments (including 39 Treasury bonds, 9 corporate bonds and 6 mortgage bonds) while the segment operated

by BondSpot listed 67 series of fixed-income instruments (including 40 Treasury bonds, 2 corporate bonds, 10

municipal bonds and 15 mortgage bonds).

March 31,

2011

December

31, 2010

March 31,

2010

Main Market

Listing revenue (PLN million) 4.7 5.2 4.4

Capitalisation of listed companies (domestic) (PLN billion) 561.1 542.6 449.7

Capitalisation of listed companies (foreign) (PLN billion) 286.1 253.8 307.2

Number of listed companies (domestic) 373 373 354

Number of listed companies (foreign) 29 27 24

Value of offerings (IPO and secondary) (PLN billion)* 1.4 3.5 17.9

Number of newly listed companies (in the period) 10 19 2

Capitalisation of newly listed companies (PLN billion) 1.6 8.8 0.5

Number of de-listings 8 3 3

Capitalisation of de-listed companies (PLN billion) 2.1 0.6 0.2

* Unicredit share issue of PLN 16.1 billion took place in Q1 2010

NewConnect

Listing revenue (PLN million) 0.4 0.2 0.2

Capitalisation of listed companies (domestic) (PLN billion) 5.2 5.0 3.1

Capitalisation of listed companies (foreign) (PLN billion) 0.2 0.2 0.2

Number of listed companies (domestic) 215 182 118

Number of listed companies (foreign) 5 3 2

Value of offerings (IPO and secondary) (PLN billion) 0.3 0.1 0.05

Number of newly listed companies (in the period) 38 25 14

Capitalisation of newly listed companies (PLN billion) 1.5 0.8 0.3

Number of de-listings* 3 4 1

Capitalisation of de-listed companies (PLN billion) 0.4 0.3 0.1

* Includes the companies which transitioned to listing on the Main Market

Listing revenue, market capitalisation, number of listed companies, number and value of debut listings, number

and value of de-listings on the Main Market and NewConnect (based on market capitalisation at the time of de-

listing) in Q1 2011 and Q4 and Q1 2010

As at and for the three-month period ended

____________

Source: Condensed Consolidated Interim Financial Statements

Information services

Revenues from information services in Q1 2011 amounted to PLN 8.2 million, a decrease of 4.7% compared to

PLN 8.6 million in Q4 2010 and an increase of 4.0% compared to PLN 7.9 million in Q1 2010. Revenues from

information services depend on the number of data vendors and subscribers, and – given that a large part of

revenues from information services is earned in the euro – the EUR/PLN exchange rate. The mean EUR/PLN

exchange rate was 3.95 EUR/PLN in Q1 2011, 3.97 EUR/PLN in Q4 2010 and 3.99 EUR/PLN in Q1 2010.

March 31,

2011

December

31, 2010

March 31,

2010

Revenues from information services (PLN M) 8.2 8.6 7.9

Number of data vendors 53 52 51

Number of subscribers ('000 of subscribers) 309.9 307.2 188.2

Number of data vendors and subscribers as at the end of Q1 2011, Q4 2010 and Q1 2010

As at

____________

Source: Company

Quarterly Report of


for Q1 2011

15

Other revenues

The Group’s other revenues in Q1 2011 amounted to PLN 0.9 million, a decrease of 60.6% compared to Q4

2010 and an increase of 96.4% compared to Q1 2010. The decrease compared to Q4 was due to additional

sponsoring revenue related to organisation of the Capital Market Gala in Q4. The increase compared to Q1 2010

is a result of a higher revenues of the companies WSE InfoEngine S.A. and Instytut Rynku Kapitałowego – WSE

Research S.A.

3.3. Operating expenses

Total operating expenses in Q1 2011 amounted to PLN 31.1 million, a decrease of 27.5%, or PLN 11.8 million,

compared to Q4 2010 and an increase of 9.3%, or PLN 2.6 million, compared to Q1 2010. The movements

primarily reflected changes in payroll costs and external services charges.

PLN'000March 31,

2011%

December

31, 2010%

March 31,

2010%

Depreciation and amortisation 3,979 12.8% 4,370 10.2% 3,988 14.0%

Payroll 9,324 30.0% 11,213 26.2% 7,471 26.3%

Other employee costs 2,853 9.2% 2,235 5.2% 2,295 8.1%

Rent and other maintenance fees 1,678 5.4% 1,568 3.7% 1,515 5.3%

Fees and taxes 4,195 13.5% 4,026 9.4% 4,212 14.8%

including: fees paid to KNF 3,891 12.5% 3,647 8.5% 3,960 13.9%

External services 7,313 23.5% 17,259 40.3% 7,321 25.7%

Other operating expenses 1,741 5.6% 2,176 5.1% 1,642 5.8%

Total 31,083 100.0% 42,848 100.0% 28,444 100.0%

Breakdown of operating expenses in Q1 2011 and Q4 and 14 2010


____________


Depreciation and amortisation in Q1 2011 amounted to PLN 4.0 million, a decrease of 8.9% compared to Q4

2010 and an increase of 0.2% compared to Q1 2010. The decrease compared to Q4 2010 was driven among

others by extension of the economic lifetime of WARSET.

Payroll and other employee costs in Q1 201 amounted to PLN 12.2 million, a decrease of 9.5% compared to Q4

2010 and an increase of 24.7% compared to Q1 2010. The increase in Q1 2011 as compared to Q1 2010 resulted

mainly from:

increase of the WSE Management remuneration as of 1 January 2011,

acquisition of an organised part of the enterprise of Elbis Sp. z o.o. at the end of Q4 2010 and a

related increase in the headcount of the Group.

External service charges in Q1 2011 amounted to PLN 7.3 million, a decrease of 57.6% compared to Q4 2010

and a decrease of 0.1% compared to Q1 2010. The significantly higher cost in Q4 was a result of the

privatisation process.

Rent and other maintenance fees ranged from PLN 1.5 million to PLN 1.7 million in each of these three quarters.

Fees and taxes ranged from PLN 4.0 million to PLN 4.2 million in each of these three quarters. Fees paid to

KNF accounted for more than 90% of fees and taxes in each of these quarters.

Other operating expenses ranged from PLN 1.6 million to PLN 2.2 million in each of these three quarters. The

significantly higher cost in Q4 was a result of the privatisation process.

Quarterly Report of


for Q1 2011

16

3.4. Other income and expenses

Other income in Q1 2011 amounted to PLN 0.6 million, a decrease compared to PLN 0.7 million in Q4 2010 and

an increase compared to PLN 0.2 million in Q1 2010. Other income in Q1 2011 and Q4 2010 mainly included

reversals of debt provisions and an annual VAT adjustment (in Q4 2010).

Other expenses in Q1 2011 amounted to PLN 0.2 million, a significant decrease compared to PLN 1.1 million in

Q4 2010 and an increase compared to PLN 0.04 million in Q1 2010. The higher expenses in Q4 2010 were due

to a discontinued investment and set up debt provisions.

3.5. Financial income and expenses

Financial income in Q1 2011 amounted to PLN 2.6 million, similar to financial income in Q4 2010 and a

decrease of 24.4% compared to Q1 2010 due to a decrease of financial assets following dividend payments in

January and July 2010 (totalling PLN 596.8 million).

Financial expenses in Q1 2011 amounted to PLN 30 thousand, a decrease compared to Q4 2010 (PLN 0.3

million) and Q1 2010 (PLN 1.1 million). The movements were mainly a result of currency exchange rates

differences.

3.6. Share of profit of associates

The Group’s share of profit of associates in Q1 2011 amounted to PLN 5.4 million as compared to PLN 2.9

million in Q4 2010 and PLN 4.4 million in Q1 2010. This was contributed mainly by profits of Krajowy

Depozyt Papierów Wartościowych, which amounted to PLN 15.2 million in Q1 2011 as compared to PLN 8.5

million in Q4 2010 and PLN 12.9 million in Q1 2010.

3.7. Income tax

The Group’s effective income tax rate (income tax as a percentage of profit before income tax) was 17.0% in Q1

2011, 17.4% in Q4 2010 and 17.9% in Q1 2010, as compared to the standard Polish corporate income tax rate of

19%.

3.8. Group’s balance sheet structure

In Q1 2011, as in previous quarters, the Group mainly financed itself from equity, which accounted for 92.9% of

total equity and liabilities as at March 31, 2011. The remaining 7.1% were liabilities. As at December 31, 2010,

the funding structure was as follows: equity accounted for 93.9% of equity and liabilities, while liabilities

accounted for 6.1%. The balance-sheet structure as at March 31, 2010 was similar: equity accounted for 94.9%

while liabilities accounted for 5.1%.

The share of non-current liabilities in total equity and liabilities was 0.6% as at March 31, 2011, and 0.9% as at

December 31, 2010 and 0.5% as at March 31, 2010.

Current liabilities accounted for 6.5% of total equity and liabilities as at March 31, 2010, 5.2% as at December

31, 2010, and 4.6% as at March 31, 2010.

Quarterly Report of


for Q1 2011

17

The Group’s assets structure did not change significantly in these quarters. The share of non-current assets in

total assets was 65.3% as at March 31, 2011, 60.5% as at December 31, 2010 and 68.4% as at March 31, 2010.

In the non-current assets, the share of available-for-sale financial assets increased as at March 31, 2011 as

compared to December 31, 2010 owing to acquisition of bonds with cash received as a PLN 54.1 million

dividend payment from the subsidiary KDPW S.A.

In these periods, the Group neither granted nor received any credits, loans, warranties or guarantees.

March 31,

2011

December

31, 2010

March 31,

2010

Non-current assets 395,870 337,664 395,052

Property and equipment 117,197 119,516 122,548

Investment in associates 144,073 138,956 183,664

Available-for-sale financial assets 66,338 11,829 3,764

Held-to-maturity financial assets 0 0 41,309

Other 68,262 67,363 43,767

Current assets 210,255 220,862 182,512

Available-for-sale financial assets 31,056 30,787 9

Held-to-maturity financial assets 0 0 111,308

Cash and cash equivalents 131,755 107,600 38,617

Other 47,444 82,475 32,578

TOTAL ASSETS 606,125 558,526 577,564

Equity 562,841 524,726 547,987

Non-current liabilities 3,649 4,814 3,118

Current liabilities 39,635 28,986 26,459

TOTAL EQUITY AND LIABILITIES 606,125 558,526 577,564

PLN'000

As at

Consolidated statement of financial position of the Group at the end of Q1 2011 and at the end of Q4 and

Q1 2010

_____________


3.9. Cash flows

In Q1 2011, cash flows from operating activities amounted to PLN 24.9 million, an increase of PLN 9.2 million,

or 58.6%, compared to Q1 2010 thanks to improved operating results. Cash flows from investing activities in Q1

2011 were negative at PLN 0.8 million as compared to positive PLN 44.8 million in Q1 2010. There were no

cash flows from financing activities in Q1 2011 while cash flows from financing activities were negative at PLN

506.1 million in Q1 2010 due to the payment of dividend by the WSE.

Quarterly Report of


for Q1 2011

18

2011 2010

Cash flows from operating activities 24,928 15,716

Cash flows from investing activities -773 44,832

Cash flows from financing activities 0 -506,098

Net increase (decrease) in cash and cash equivalents 24,155 -445,550

Cash and cash equivalents at beginning of period 107,600 484,167

Cash and cash equivalents at end of period 131,755 38,617


March 31,PLN'000

Group's consolidated cash flows in Q1 2011 and Q1 2010

_____________


3.10. Capital expenditure

The Group’s total capital expenditure in Q1 2011 amounted to PLN 1.3 million, of which 48.1% were

investments in property and equipment and 51.9% were investments in intangible assets. The Group’s capital

expenditure in Q1 2010 amounted to PLN 1.3 million, of which 99.2% were property and equipment and 0.8%

intangible assets. The vast majority of the Group’s capital expenditures are the expenditures of the WSE. The

expenditure in Q1 2011 mainly included investments in the implementation of the UTP and the modernisation of

the financial and accounting system while the expenditure in Q1 2010 mainly included investments in the

Exchange Centre, the WAN, and IT equipment.

3.11. Seasonality and cyclicality of operations

Share prices and the value of trading are significantly influenced by local, regional and global trends impacting

the capital markets, which determines the pace of new issues and the activity of investors on the WSE. As a

result, the revenue of the Group is cyclical: it decreased due to the global financial crisis in 2008 and rose in

2009 and 2010 following the general capital market trend. No seasonal trend was observed in Q1 2011.

3.12. Key factors impacting results in the horizon of at least one quarter

CAPITAL EXPENDITURES FOR THE IMPLEMENTATION OF THE UTP

In July 2010, the Company entered into an agreement with NYSE Euronext to establish a framework for their

strategic cooperation. In particular, the master agreement provides for the acquisition by WSE of the UTP

(Universal Trading Platform). In October 2010, the Company entered into agreements with NYSE Technologies

SAS outlining the terms for the delivery, licensing and software maintenance of the UTP.

The capital expenditures for the UTP will be financed with the WSE’s own funds.

REMUNERATION OF THE WSE MANAGEMENT BOARD

Following the decrease of the stake held by the State Treasury in the WSE share capital below 50% after the

completion of the Company’s IPO, the WSE is no longer bound by the provisions of the Act on Remuneration of

Quarterly Report of


for Q1 2011

19

Persons Managing Certain Legal Entities of March 3, 2000 (Dz.U.00.26.306 as amended) and the resulting

limitations on the amount of base salary and other financial benefits paid for performed managerial functions.

Since 1 January 2011, the new WSE Management Board remuneration system has been implemented.

3.13. Other significant information

FEASIBILITY OF PREVIOUSLY PUBLISHED PROJECTIONS

The Group did not publish any projections of 2011 results.

INFORMATION ABOUT ISSUE AND REDEMPTION OF NON-EQUITY AND EQUITY SECURITIES

In Q1 2011, non-equity and equity securities were neither issued nor redeemed.

INFORMATION ABOUT DIVIDENDS

In Q1 2011, the WSE did not pay any dividends. In April 2011, the WSE Management Board requested the WSE

Supervisory Board’s opinion on a motion concerning profit distribution, which provides for a dividend payment

of PLN 134,730,120.00, equivalent to 99.8% of the Company’s net profit of 2010. On 6 April 2011, the WSE

Supervisory Board gave a positive opinion of the WSE Management Board’s profit distribution motion. The

General Meeting is the only body of the Company authorised to make a decision on profit distribution including

dividend payment.

If the General Meeting approves the dividend payment of PLN 134,730,120.00, the dividend will be PLN 3.21

per share. None of the Company’s shares are preferred with regard to dividend.

EVENTS AFTER THE BALANCE-SHEET DATE WHICH COULD SIGNIFICANTLY IMPACT THE FUTURE

FINANCIAL RESULTS OF THE ISSUER

There were no events after the balance-sheet date which could significantly impact the future financial results of

the issuer.

CONTINGENT LIABILITIES AND INVESTMENT COMMITMENTS

The Group had no contingent liabilities and investment commitments at 31 March 2011.

PENDING LITIGATION

According to the Company’s best knowledge, there is no litigation pending against the parent entity or other

companies of the Group before a court, an arbitration body or a public administration body with a value of at

least 10% of the Company’s equity.

RELATED PARTY TRANSACTIONS

In Q1 2011, the WSE and the associates of the WSE did not make any significant transactions on terms other

than market terms.

GRANTED WARRANTIES AND GUARANTEES

The Group granted no warranties or guarantees in Q1 2011.

Quarterly Report of


for Q1 2011

20

OTHER SIGNIFICANT INFORMATION

In the opinion of the Company, in Q1 2011, there were no significant events or circumstances, other than those

presented in this quarterly Report, which would be significant to an evaluation of the Company’s or the Group’s

position with regard to its human resources, assets, financial standing, financial results and capacity to meet

obligations.

Quarterly Report of


for Q1 2011

21

4. Quarterly financial information of the Warsaw Stock Exchange for Q1 2011

This quarterly financial information of the Warsaw Stock Exchange has been prepared in accordance with the

accounting policy principles binding for the Condensed Consolidated Interim Financial Statements for the three-

month period ended March 31, 2011. The estimates have not changed substantially in the three-month period

ended March 31, 2011 including adjustments of provisions, deferred tax provisions and assets mentioned in the

IFRS, and there were no significant asset revaluation write-offs. In that period, the Company and its subsidiaries

did not execute one or many significant transactions with related parties on terms other than market terms and

did not grant warranties of a credit, loan or guarantee.

Separate statement of comprehensive income for the three-month period ended March 31, 2011

(PLN’000)

Three months

ended

31.03.2011

Three months

ended

31.03.2010

Revenue 65,635 51,844

Operating expenses 28,838 26,577

Other income 606 215

Other expenses 163 31

O perating profit 37,240 25,451

Financial income 2,585 3,242

Financial expenses 28 988

Profit before income tax 39,797 27,705

Income tax expense 7,640 5,712

Profit for the period 32,157 21,993

O ther comprehensive income:

Gains/(losses) from the valuation of available-for-

sale financial assets of the parent entity (280) (638)

O ther comprehensive income after tax (280) (638)

Total comprehensive income 31,877 21,355

- -


Profit for the period attributable to the shareholders 32,157 21,993

- -


Total comprehensive income attributable to the

shareholders 31,877 21,355

- -

Basic / diluted earnings per share (PLN) 0.77 0.46

____________

Source: Company

Quarterly Report of


for Q1 2011

22

Separate statement of financial position as at March 31, 2011 (PLN’000)

ASSETS 31.03.2011 31.12.2010 31.03.2010

Non-current assets 273,343 220,157 231,759

Property and equipment 116,256 118,543 121,774

Intangible assets 34,558 34,810 12,061

Investment in associates 11,652 11,652 11,652

Investment in subsidiaries 36,415 36,415 32,915

Deferred tax assets 4,972 3,729 5,026

Available-for-sale financial assets 66,338 11,829 3,764

Held-to-maturity financial assets - - 41,309

Prepayments 3,152 3,179 3,258

Current assets 194,998 206,513 170,480

Inventories 430 438 433

Corporate income tax receivable - 575 97

Trade and other receivables 44,632 80,071 30,231

Available-for-sale financial assets 31,056 30,787 9

Held-to-maturity financial assets - - 110,329

Cash and cash equivalents 118,880 94,642 29,381

TO TAL ASSETS 468,341 426,670 402,239

EQ UITY AND LIABILITIES 31.03.2011 31.12.2010 31.03.2010

Equity 428,321 396,444 374,606

Share capital 63,865 63,865 63,865

Other reserves (525) (245) 306

Retained earnings 364,981 332,824 310,435


Employee benefits payable 2,266 2,266 1,952

Other long-term payables - 1,360 -


Trade payables 3,505 5,885 3,347

Corporate income tax payable 4,416 - -

Other payables 25,041 10,983 16,094


Provisions and other liabilit ies and charges 250 200 250

TO TAL EQ UITY AND LIABILITIES 468,341 426,670 402,239

____________

Source: Company

Quarterly Report of


for Q1 2011

23

Separate cash flow statement for the three-month period ended March 31, 2011 (PLN’000)

Three months

ended

31.03.2011

Three months

ended

31.03.2010

A 24,570 16,174

Cash generated from operations 28,395 22,215

Income tax paid (3,825) (6,041)

- -

B (332) 45,064

Purchases of property and equipment (580) (1,073)

Proceeds from sale of property and equipment - -

Purchases of intangible assets (692) (3)

Purchases of available-for-sale financial assets (54,201) -

Sale of available-for-sale financial assets - 45,707

Sale of held-to-maturity financial assets - -

Redemption of held-to-maturity Treasury bills - -

Interest received 1,053 417

Dividends paid - -

Dividends received 54,093 24

Other (5) (8)

- -

C - (506,098)

Dividends paid - (506,098)

- -

D 24,238 (444,860)

Cash and cash equivalents at the beginning of

the period 94,642 474,241

Cash and cash equivalents at the end of the

period 118,880 29,381

Cash flows from operating activities:

Cash flows from investing activities:

Cash flows from financing activities:

Net increase / (decrease) in cash and cash equivalents

____________

Source: Company

Quarterly Report of


for Q1 2011

24

Separate statement of changes in equity for the three-month period ended March 31, 2011 (PLN’000)

Share capitalO ther

reserves

Retained

earningsTotal

Balance as at 31 December 2009 63,865 944 288,442 353,251 - 353,251

Adjustments - acquisition of BondSpot S.A. - - - - - -

Profit for three months ended 31 March 2010 - - 21,993 21,993 - 21,993

Revaluation of available-for-sale financial assets - (638) - (638) - (638)

Total comprehensive income for three months

ended 31 March 2010 - (638) 21,993 21,355 - 21,355

Balance as at 31 March 2010 63,865 306 310,435 374,606 - 374,606

- - - - - -

Balance as at 31 December 2009 63,865 944 288,442 353,251 - 353,251

Adjustments - acquisition of BondSpot S.A. - - - - - -

Dividend - - (90,659) (90,659) - (90,659)

Changes in equity due to sale of property and

equipment - - - - - -

Profit for 2010 - - 135,041 135,041 - 135,041

Revaluation of available-for-sale financial assets - (1,189) - (1,189) - (1,189)

Total comprehensive income for 2010 - (1,189) 135,041 133,852 - 133,852

Balance as at 31 December 2010 63,865 (245) 332,824 396,444 - 396,444

- - - - - -

Balance as at 31 December 2010 63,865 (245) 332,824 396,444 - 396,444

Dividend - - - - - -

Profit for three months ended 31 March 2011 - - 32,157 32,157 - 32,157


Total comprehensive income for three months

ended 31 March 2011 - (280) 32,157 31,877 - 31,877

Balance as at 31 March 2011 63,865 (525) 364,981 428,321 - 428,321

Minority

shareTotal equity

Attributable to the shareholders of the parent entity

____________

Source: Company

Quarterly Report of


for Q1 2011

25

Appendix: Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2011 and the auditor’s review report

GIEŁDA PAPIERÓW WARTOŚCIOWYCH W WARSZAWIE S.A. GROUP

(“THE WARSAW STOCK EXCHANGE GROUP”)

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE–MONTH PERIOD ENDED 31 MARCH 2011

THE WARSAW STOCK EXCHANGE GROUP


FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2011

(ALL AMOUNTS IN PLN THOUSAND, UNLESS OTHERWISE STATED)

1

TABLE OF CONTENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ........................................... 2

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ................................. 3

CONSOLIDATED STATEMENT OF CASH FLOWS........................................................... 4

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................ 5

1. General information ...................................................................................................... 6

2. Summary of significant accounting policies ................................................................. 8

3. Financial risk management ........................................................................................... 8

4. Property and equipment .............................................................................................. 13

5. Intangible assets .......................................................................................................... 13

6. Investments in associates ............................................................................................ 14

7. Deferred tax ................................................................................................................. 15

8. Financial assets available for sale ............................................................................... 17

9. Financial assets held to maturity ................................................................................. 19

10. Trade and other receivables ........................................................................................ 20

11. Cash and cash equivalents ........................................................................................... 21

12. Equity .......................................................................................................................... 21

13. Trade and other liabilities............................................................................................ 24

14. Sales revenue ............................................................................................................... 24

15. Operating expenses ..................................................................................................... 25

16. Income tax ................................................................................................................... 26

17. Contingent positions ................................................................................................... 26

18. Contingent and investment liabilities .......................................................................... 26

19. Transactions with related parties ................................................................................. 27

20. Information on remuneration and benefits of key management personnel ................. 30

21. Cash inflows on operating activity .............................................................................. 31

22. Dividend ...................................................................................................................... 31

23. Earnings per share ....................................................................................................... 32

24. Segments of activity .................................................................................................... 32

25. Subsequent events ....................................................................................................... 35





2

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The notes presented on pages 6 to 35 form an integral part of these condensed consolidated interim financial

statements.

ASSETS Note 31.03.2011 31.12.2010 31.03.2010

NON-CURRENT ASSETS 395,870 337,664 395,052

Property and equipment 4 117,197 119,516 122,548

Intangible assets 5 59,847 60,167 35,233

Investments in associates 6 144,073 138,956 183,664

Deferred tax assets 7 5,234 4,007 5,266

Available-for-sale f inancial assets 8 66,338 11,829 3,764

Financial assets held to maturity - - 41,309

Prepayments 3,181 3,189 3,268

CURRENT ASSETS 210,255 220,862 182,512

Inventories 430 438 433

Corporate income tax receivable - 621 146

Trade and other receivables 10 47,014 81,416 31,999

Available-for-sale f inancial assets 8 31,056 30,787 9

Financial assets held to maturity - - 111,308

Cash and cash equivalents 11 131,755 107,600 38,617

TOTAL ASSETS 606,125 558,526 577,564

EQUITY AND LIABILITIES Note 31.03.2011 31.12.2010 31.03.2010

Equity 562,841 524,726 547,987

Equity of the shareholders of the parent entity 561,872 523,843 547,213

Share capital 12 63,865 63,865 63,865

Other reserves 12 (281) 204 1,024

Retained earnings 12 498,288 459,774 482,324

Non-controlling interests 969 883 774



Finance lease liabilities 112 77 57

Provisions for other liabilities and charges 1,170 1,010 1,010

Other liabilities - 1,360 61


Trade payables 13 3,932 7,472 3,632

Finance lease liabilities 71 73 80

Income tax payable 4,416 - -

Other liabilities 13 26,423 11,440 16,339


Provisions for other liabilities and charges 251 211 418

TOTAL EQUITY AND LIABILITIES 606,125 558,526 577,564





3

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Note Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Revenue 14 69,164 53,983

Operating expenses 15 31,083 28,444

Other income 608 216

Other expenses 172 42

Operating profit 38,517 25,713

Financial income 2,596 3,435

Financial expenses 30 1,109

Share of profit of associates 6 5,438 4,359


Income tax expense 16 7,921 5,790


Other comprehensive income:

Gains/(losses) from the valuation of financial assets available for sale of the

parent entity

(280)

(638)

Gains/(losses) from the valuation of financial assets available-for-sale of the associate

(205)

209

Other comprehensive income after tax (485) (429)



Profit for the period attributable to the shareholders of the parent entity

38,514

26,583

Profit for the period attributable to the non-controlling interests 86 25


Total comprehensive income attributable to the shareholders of the parent

entity

38,029

26,154

Total comprehensive income attributable to the non-controlling interests

86

25

Basic / diluted earnings per share (expressed in PLN) 0.92 0.63


statements.





4

CONSOLIDATED STATEMENT OF CASH FLOWS


statements.

Note

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

A 24,928 15,716

Cash generated from operations 21 28,740 21,782

Income tax paid (3,812) (6,066)

B (773) 44,832

Purchases of property and equipment 4 (644) (1,310)

Proceeds from sale of property and equipment 1 -

Purchases of intangible assets 5 (696) (10)

Acquisition of subsidiary less acquired cash - -

Purchases of available-for-sale f inancial assets (54,201) -

Sales of available-for-sale f inancial assets - 45,707

Sales of held to maturity f inancial assets - -

Redemption of bonds held to maturity - -

Interest received 674 421

Dividends paid - -

Dividends received 54,093 24

Other - -

C - (506,098)

Dividends paid - (506,098)

D 24,155 (445,550)

Cash and cash equivalents at the beginning of the period 107,600 484,167

Cash and cash equivalents at the end of the period 11 131,755 38,617

Net (decrease) / increase in cash and cash equivalents

Cash flows from operating activities:

Cash flows from investing activities:

Cash flow from financing activities:


CONDENCED CONSOLIDATED INTERIM FINANCIAL STATEMENTS



5

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

The notes presented on pages 6 to 35 form an integral part of these condensed consolidated interim financial statements.

Share capitalOther

reserves

Retained

earningsTotal

63,865 1,453 455,741 521,059 749 521,808

Profit for the 3 month period ended 31 March 2010 - - 26,583 26,583 25 26,608


- (429) 26,583 26,154 25 26,179

63,865 1,024 482,324 547,213 774 547,987

63,865 1,453 455,741 521,059 749 521,808

Dividends - - (90,659) (90,659) - (90,659)

Profit for the year 2010 - - 94,692 94,692 134 94,826

Revaluation of available-for-sale financial assets - (1,249) - (1,249) - (1,249)

- (1,249) 94,692 93,443 134 93,577

63,865 204 459,774 523,843 883 524,726

63,865 204 459,774 523,843 883 524,726

Profit for the 3 month period ended 31 March 2011 - - 38,514 38,514 86 38,600


- (485) 38,514 38,029 86 38,115

63,865 (281) 498,288 561,872 969 562,841

Non-

controlling

interests

Total equity

Balance as at 31 December 2009

Total comprehensive income for the three-month period ended 31 March 2010

Balance as at 31 March 2010


Attributable to the shareholders of the parent entity

Total comprehensive income for the three-month period ended 31 March 2011

Balance as at 31 March 2011

Total comprehensive income for 2010







NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

6

1. General information

1.1. Legal status and the scope of operations of the parent company

The parent entity of Giełda Papierów Wartościowych w Warszawie S.A. Group (the “Group”) is Giełda

Papierów Wartościowych w Warszawie Spółka Akcyjna (the “Warsaw Stock Exchange”, the “Exchange”,

“WSE” or the “Company”) with its registered office in Warsaw, ul. Książęca 4. The Company was established

by Notarial Deed on 12 April 1991 and registered with the Commercial Court in Warsaw on 25 April 1991.

The core operations of WSE comprise the organization of public trading in securities.

1.2. Approval of the financial statements

These condensed consolidated financial statements were authorized for issue by the parent entity’s Management

Board on 6 May 2011.

1.3. The Group’s composition and operations

The Warsaw Stock Exchange and its subsidiaries: WSEInfoEngine S.A., BondSpot S.A. and Instytut Rynku

Kapitałowego – WSE Research S.A. comprise the Warsaw Stock Exchange Group. The associates on which the

Group exerts significant influence are as follows: KDPW S.A., Centrum Giełdowe S.A. and INNEX Stock

Exchange.

The composition of the Group as at 31 March 2011 and 31 March 2010 is set out in table below:

Name

of the entity Registered office

of the entity Scope of operations

% interest in

share capital

Parent company

Warsaw Stock Exchange 00-498 Warsaw

ul. Książęca 4

Poland

operating a stock exchange through the

organization of public trading in securities

conducting educational, promotional and

information activities regarding functioning of

the capital market

organizing an alternative trading system

Subsidiaries

WSEInfoEngine S.A.

00-498 Warsaw

ul. Książęca 4

Poland

providing data transmission and information

services

100.00%

BondSpot S.A. S.A.

(former MTS-CeTO S.A.)

00-609 Warsaw

Al. Armii Ludowej 26

Poland

running an over-the-counter market and

conducting other activities related to organizing

trading in securities and other financial

instruments

organizing an alternative trading system

organizing and conducting all activities which

supplement and support the functioning of the

markets operated by the Company

92.47%






7

Name

of the entity Registered office

of the entity Scope of operations

% interest in

share capital

Instytut

Rynku Kapitałowego -

WSE Research S.A.

(former Warszawski

Instytut Rynku

Kapitałowego S.A.)

00-498 Warszawa

ul. Książęca 4

Poland

publishing books, newspapers, magazines and

other periodicals

non-school forms of education

activities which support education

100.00%

Associates

Krajowy Depozyt Papierów

Wartościowych S.A.

00-498 Warsaw

ul. Książęca 4

Poland

maintaining a deposit for securities

clearing and settlement of transactions

concluded on the stock exchanges, energy

exchanges and commodity exchanges

conducting other activities related to trading

in securities and other financial instruments

administration of the Guarantee Fund

33.33%

Centrum Giełdowe S.A. 00-498 Warsaw

ul. Książęca 4

Poland

building, urban and technological design

operations

undertaking general building works related to

constructing buildings

leasing of real estate on own account

real estate management

24.79%

Closed joint stock

company „INNEX Stock Exchange”

01015, Kiev

ul. Moskowska 43/11

Ukraine

managing financial markets

stock exchange transactions in securities

other types of wholesale

other auxiliary activities relating to financial

intermediation

commercial and management advisory

services

organizing secondary trading in shares,

bonds and options

organizing tenders on the primary market for

shares in Ukrainian businesses under

privatisation

24.98%

In the period from 1 January 2011 to the date of the condensed consolidated interim financial statement as at 31

March 2011 there have been no changes in the structure of the Group.






8

2. Summary of significant accounting policies

2.1. Basis of preparation of the condensed consolidated interim financial statements

These condensed consolidated interim financial statements of the Warsaw Stock Exchange Group have been

prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” endorsed by

the European Union.

These condensed consolidated interim financial statements have been prepared on the assumption that the

Group will continue as a going concern in the foreseeable future. As at the date of these condensed consolidated

interim financial statements, there are no circumstances indicating any threats to the Group’s ability to continue

operations.

These condensed consolidated interim financial statements have been prepared under the historical cost basis,

with the exception of available-for-sale financial assets which are measured at fair value.

2.2. Major accounting policy principles

These condensed consolidated interim financial statements have been prepared in accordance with the

accounting policy principles binding for the consolidated financial statements for the year ended 31 December

2010, except for standards and interpretations binding for:

a) Taxes on income in the interim periods are accrued using the tax rate that would be applicable to

expected total annual earnings.

b) Published Standards and Interpretations which have been issued and binding of the Group for

annual periods starting on 1 January 2011:

- IFRIC 14, (Revised), Prepayments of a Minimum Funding, binding for annual periods commencing

on or after 1 January 2011;

- IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments, binding for annual periods

commencing on or after 1 July 2010;

- IAS 32 (Revised), Classification of Rights Issues, binding for annual periods commencing on or after

1 February 2010.

c) Standards and Interpretations which have not been approved by the European Union yet:

- IFRS 1 (Revised), Severe Hyperinflation and Removal of Fixed Dates for First – time Adopters,

binding for annual periods commencing on or after 1 July 2011.

- IFRS 7, Disclosures - Transfers of Financial Assets binding for annual periods commencing on or

after 1 July 2011

- IFRS 9, Financial Instruments, binding for annual periods commencing on or after 1 January 2013.

- IAS 12 (Revised), Income taxes - Deferred Tax: Recovery of Underlying Assets, binding for annual

periods commencing on or after 1 January 2012

3. Financial risk management

3.1. Financial risk factors

The Group’s activities expose it to a variety of financial risks. The Group is subject to the following financial

risks: market risk (including fair value and cash flow interest rate risk and price risk), credit risk and liquidity

risk. The Group’s overall risk management programm focuses on the unpredictability of financial markets and






9

seeks to minimize any potential adverse effects on the Group’s financial performance. The parent entity’s

Management Board is responsible for risk management within the Group.

The Group has dedicated departments, responsible for ensuring its liquidity, including foreign currency liquidity,

debt collection and timely payment of liabilities, particularly tax liabilities.

BondSpot S.A. has signed two forward contracts for sales of Euro currency. First contract was signed on 10

March 2011 with nominal value of EUR 50,000 with the maturity date of 18 April 2011 at the rate of 4.0100

with nominal value of PLN 200,500. Second contract was signed on 31 March 2011 with nominal value of EUR

60,000 with the maturity date of 5 May 2011 at the rate of 4.0060 with nominal value of PLN 240,360. Value of

the contracts as at 31 March 2011 is negative and amount to PLN 292.23 and 852.31 respectively. The company

does not hedge the above mentioned forward contracts in any way.

3.2. Market risk

(a) Cash flow and fair value interest rate risk.

The Group is moderately exposed to interest rate risk. The Group has short-term and long-term assets whose

interest terms and profitability were determined at the inception of contracts and are not subject to significant

changes resulting from interest rate fluctuations. Due to the average or short period to maturity the risk of

changes in the cash flows related to those assets resulting from interest rate fluctuations is relatively low.

The Group minimizes interest rate risk by maintaining a short average duration period for the entire Treasury

bond portfolio – below two years. With the increase in interest rates, the Group benefits from higher interest

rates than the ones offerd by the bank deposits and increase in cash flows, and at the same time the fair value of

the bonds decreases.

(b) Foreign exchange risk

The Group does not conduct significant international activities and has moderate foreign exchange risk. The

Management Board concludes that changes in the exchange rates do not influence the financial results of the

Group.

3.3. Credit risk

Credit risk is defined as a risk of occurrence of losses due to counterparty’s default of payments to the Group or

as a risk of decrease in economic value of amounts due to the Group as a result of deterioration of

counterparty’s ability to repay due amounts.

The credit risk connected with trade receivables is restricted by the Management Board of the parent entity by

setting credit limits and an assessment of the clients’ credibility. Resolutions of the Management Board of the

parent entity, which are binding for the Group, differ payment dates depending on groups of clients. Standard

payment dates amount to 30 days. The payment terms for recipients of stock exchange news bulletins are

mostly 60 days. Specific procedure of debt collections in the Group has been implemented.






10

Financial assets held by the Group are disclosed in the table below.

By decision of the Management Board of the parent entity, the portfolio of debt securities comprises only

securities issued or guaranteed by the State Treasury (rating A2 according to Moody’s).

In the case of banks and financial institutions (concerning term deposits and bank accounts) only entities with a

stable financial standing are accepted (rating above Baa2 according to Moody’s).

3.4. Liquidity risk

An analysis of the Group's financial position shows that the Group is not significantly exposed to the liquidity

risk.

An analysis of the structure of the Group’s assets shows a considerable share of liquid assets, and thus, a very

good position of the Group in terms of liquidity. Cash and debt securities owned by the Group as at 31 March

2011 amounted to PLN 227,842 thousand (as at 31 December 2010: PLN 148,913 thousand) representing

37,60% of the total assets (as at 31 December 2010: 26,66%)

The analysis of the structure of equity and liabilities shows the following share of equity in financing the WSE

Group's operations: as at 31 March 2011 equity comprised 92.92% of WSE’s total liabilities and equity (31

December 2010: 93.95%)

The Management Board monitors, on a current basis, forecasts of the Group’s liquidity funds on the basis of

contractual cash flows, based on the current interest rates.

31.03.2011 31.12.2010 31.03.2010

97,394 42,616 3,773

66,338 11,829 3,764

31,056 30,787 9

- - 152,617

- - 41,309

- - 111,308

173,466 185,980 65,502

41,715 78,389 26,894

- bank deposits and current accounts (included in cash and

cash equivalents) 131,751 107,591 38,608

- term deposits (presented as other short-term financial

assets) - - -

270,860 228,596 221,892

Financial assets available-for-sale

Financial assets held to maturity

Loans and receivables

Total financial assets

- long-term

- short-term

- long-term

- short-term

- trade and other receivables






11

Liquidity analysis based on the contractual cash flows is presented in the following tables:

Up to 1

month

1-3

months

3-6

months

6-12

months

1-5

years

Over

5 yearsTotal

Treasury bonds and bills available-for-sale - 31,275 - 625 70,500 - 102,400

Term deposits and current accounts 61,387 8,621 61,747 - - - 131,755

Trade and other receivables 38,462 3,075 62 - - - 41,599

99,849 42,971 61,809 625 70,500 - 275,754

Trade liabilities 3,932 - - - - - 3,932

Finance lease liabilities 6 27 18 20 112 - 183

3,938 27 18 20 112 - 4,115

95,911 42,944 61,791 605 70,388 - 271,639

Liquidity risk as at 31 March 2011

Assets

Total assets

Liabilities

Total liabilities

Liquidity gap






12

Up to 1

month

1-3

months

3-6

months

6-12

months

1-5

years

Over

5 yearsTotal

Treasury bonds and bills available-for-sale - - 31,275 625 12,500 - 44,400

Term deposits and current accounts 54,990 52,110 500 - - - 107,600

Trade and other receivables 20,853 3,340 20 19 88 - 24,320

75,843 55,450 31,795 644 12,588 - 176,320

Trade liabilities 5,523 861 544 272 272 - 7,472

Finance lease liabilities 5 24 19 25 78 - 151

5,528 885 563 297 350 - 7,623

70,315 54,565 31,232 347 12,238 - 168,697

Total liabilities

Liquidity gap

Liquidity risk as at 31 December 2010

Assets

Total assets

Liabilities






13

4. Property and equipment

In the period ended 31 March 2011 the Group has not sold tangible fixed assets.

5. Intangible assets

31.03.2011 31.12.2010 31.03.2010

Land and buildings 93,572 94,296 95,954

Vehicles and machinery 17,943 19,534 23,619

Furniture, f ittings and equipment 1,753 1,794 1,624

Assets under construction 3,925 3,892 1,351

Other 4 - -

Plant and equipment total 117,197 119,516 122,548

Three-month

period ended

31.03.2011

Year ended

31.12.2010

Three-month

period ended

31.03.2010

Opening gross book value 207,186 199,058 199,058

Accumulated depreciation (87,670) (74,711) (74,711)

Opening net book value 119,516 124,347 124,347

Additions 644 8,329 1,310

Disposals & liquidation - (203) -

Depreciation charge (2,963) (12,958) (3,109)

Closing net book value 117,197 119,516 122,548

31.03.2011 31.12.2010 31.03.2010

Licenses 26,143 26,367 10,868

Copyrights 1,183 1,279 1,379

Goodw ill 32,521 32,521 22,986

Intangible assets 59,847 60,167 35,233






14

Three-month

period ended

31.03.2011

Year ended

31.12.2010

Three-month

period ended

31.03.2010

Opening gross book value 119,164 91,492 91,492

Accumulated depreciation (58,997) (55,390) (55,390)

Opening net book value 60,167 36,102 36,102

Additions 696 28,352 10

Disposals & liquidation - (564) -

Depreciation charge (1,016) (3,723) (879)

Closing net book value 59,847 60,167 35,233

6. Investments in associates

None of the Group’s associates is listed on the active market. Selected financial data of the associates are

presented below:

Three months period ended 31 March 2011

Name of the entity Assets Equity Libilities Revenue Profit (loss) for

the period

Interest

held

The Group’s

share in

associate’s

profit (loss)

KDPW S.A. 1,230,951 384,352 846,599 173,592 15,176 33.33% 5,058

Centrum Giełdowe S.A. 92,714 64,059 28,655 4,360 1,534 24.79% 380

INNEX * 2,170 2,145 25 46 (59) 24.98% -

Total 1,325,835 450,556 875,279 177,998 16,651 5,438

* INNEX Stock Exchange prepares financial statements in accordance with Ukrainian accounting policies.

Three-month

period ended

31.03.2011

Year ended

31.12.2010

Three-month

period ended

31.03.2010

138,956 179,324 179,324

Dividends (116) (54,302) (228)

Share in profit * 5,438 14,170 4,359

Other additions - (176) -

Share in revaluation reserve (205) (60) 209

144,073 138,956 183,664

* Represents share in profit after tax

Closing balance

Opening balance






15

Year ended 31 December 2010


the period

Interest

held

The Group’s

share in

associate’s

profit (loss)

KDPW S.A. 1,361,353 370,023 991,330 150,908 42,106 33.33% 14,035

Centrum Giełdowe S.A. 92,880 63,027 29,853 17,533 547 24.79% 135

INNEX * 2,313 2,303 10 283 (192) 24.98% -

Total 1,456,546 435,353 1,021,193 168,724 42,461 14,170

* INNEX Stock Exchange prepares financial statements in accordance with Ukrainian accounting policies.

Three months ended 31 March 2010


the period

Interest

held

The Group’s

share in

associate’s

profit (loss)

KDPW S.A. 1,253,762 604,310 749,452 30,591 12,861 33.33% 4,287

Centrum Giełdowe S.A. 94,190 62,770 31,419 4,216 290 24.79% 72

INNEX * 2,478 2,380 98 785 24 24.98% -

Total 1,350,430 669,460 780,969 35,592 13,175 4,359

* INNEX Stock Exchange prepares financial statements in accordance with Ukrainian accounting policies. Data as at 31 December 2009.

In accordance with Article 4, clause 3 of the Memorandum of Association of KDPW S.A., the company’s

shares are only registered shares.

The registered offices of the associates, except for INNEX, are located in Poland. The registered office of

INNEX is located in the Ukraine.

7. Deferred tax

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets

against current tax liabilities and when the deferred taxes relate to the same fiscal authority. After offsetting, the

following amounts are disclosed in the condensed consolidated interim financial statements:

The gross movement on the deferred tax asset account is as follows:






16

Change in the deferred tax balance are as follows:

The Group did not include differences between book and tax values of the associates in the calculation of

deferred tax.

Total difference between book and tax value of the associates amounted to PLN 128,601 thousand as at 31

March 2011 (123,484 thousand as at 31 December 2010). According to The Act of 22 February 2002 on

Corporate Income Tax, the parent entity will not be charged with tax on dividend paid by its associates.

Moreover, the parent entity does not intend to sell shares in associates. Therefore, the Group did not recognize a

deferred tax liability in respect of the difference between the book value of associates and its tax base, which

would amount to PLN 24,424 thousand as at 31 December 2011 (PLN 23,462 thousand as at 31 December

2010).

Deferred tax assets: 31.03.2011 31.12.2010 31.03.2010

(4,787) (2,375) (4,241)

(1,840) (1,931) (2,266)

Total (6,627) (4,306) (6,507)

- deferred tax assets to be recovered w ithin 12 months

- deferred tax assets to be recovered after more than 12 months

Deferred tax liabilities: 31.03.2011 31.12.2010 31.03.2010

1,278 (69) 810

115 368 431

Total 1,393 299 1,241

- deferred tax assets to be recovered w ithin 12 months

- deferred tax assets to be recovered after more than 12 months

Three-month

ended

31.03.2011

Year ended

31.12.2010

Three-month

ended

31.03.2010

Deferred tax assets (net) at the beginning of the period (4,007) (2,400) (2,516)

Credited to the income statement (1,161) (1,328) (2,600)

Tax charged (credited) to other comprehensive income (66) (279) (150)

Deferred tax assets (net) at the end of the period (5,234) (4,007) (5,266)






17

8. Financial assets available for sale

Changes in financial assets available-for-sale:

Available-for-sale financial assets include:

Three-month

ended

31.03.2011

Year ended

31.12.2010

Three-month

ended

31.03.2010

Beginning of the period 42,616 49,622 49,622

Additions (purchase of Treasury bonds) 55,142 3,055 48

Reclassif ication from protfolio of f inancial assets held to

maturity - 152,372 -

Decreases (redemption of Treasury bonds and bills, interest

received) - (160,965) (45,109)

Change in fair value – recognized in other comprehensive

income (364) (1,468) (788)

- shares 4 (1,031) 26

- Treasury bonds and Treasury bills (368) (437) (814)

End of the period 97,394 42,616 3,773

Non-current portion 66,338 11,829 3,764

Current portion 31,056 30,787 9

31.03.2011 31.12.2010 31.03.2010

Debt financial assets 96,087 41,313 -

Treasury bonds 96,087 41,313 -

Equity financial assets 1,307 1,303 3,773

Listed on the active market 660 656 3,126

Not listed on the active market 647 647 647

Total 97,394 42,616 3,773






18

Equity securities in available-for-sale portfolio include:

Since there is no active market for shares of XTRADE S.A. and Towarowa Giełda Energii S.A. and it is not

possible to reliably determine the fair value of the shares of those companies, they were recognized at cost, less

impairment losses.

Due to the losses of XTRADE S.A. shares of the company have been fully impaired.

The fair values of quoted investments are based on current share quotations. The value of S.C. SIBEX - Sibiu

Stock Exchange S.A. (SIBEX), which is listed on S.C. SIBEX - Sibiu Stock Exchange S.A., was valued based

on its market price as at 31 March 2011.

Name of the entity

Purchase

consideration

of shares

Impairment RevaluationCarrying

amount

31.03.2011

XTRADE S.A., Warszaw a, Polska 220 (220) - -

Tow arow a Giełda Energii S.A., Warszaw a, Polska 647 - - 647

S.C. SIBEX - Sibiu Stock Exchange S.A., Sibiu, Rumunia 1,344 (684) - 660

Total available-for-sale equity securities 2,211 (904) - 1,307

31.12.2010

XTRADE S.A., Warszaw a, Polska 220 (220) - -

Tow arow a Giełda Energii S.A., Warszaw a, Polska 647 - - 647

S.C. SIBEX - Sibiu Stock Exchange S.A., Sibiu, Rumunia 1,343 (687) - 656

Total available-for-sale equity securities 2,210 (907) - 1,303






19

9. Financial assets held to maturity

Changes in financial assets held to maturity:

Three-month

ended 31.03.2011

Year ended

31.12.2010

Three-month

ended 31.03.2010

Beginning of the period - 150,645 150,645

Additions (purchases of Treasury bonds, bills and interest

accrued) - 2,727 1,972

Decreases (redemption of bonds and interest received as well

as reclassification from held to matrurity to available- for-sale

financial assets)

- (153,372) -

End of the period - - 152,617

Non-current - - 41,309

Current - - 111,308

Held to maturity financial assets include:

31.03.2011 31.12.2010 31.03.2010

Total non-current: - - 41,309

- Bonds w ith f ixed interest - - 41,309

Total current - - 111,308

- Bonds w ith f ixed interest - - 110,329

- Bonds w ith variable interest - - -

- Treasury bills - - 979

Total - - 152,617






20

10. Trade and other receivables

Trade and other receivables comprise the following:

31.03.2011 31.12.2010 31.03.2010

Gross trade receivables 44,028 27,214 28,444

Impairment write-down of trade receivables (2,429)

(2,904) (1,550)

Net trade receivables 41,599 24,310 26,894

Dividend receivables 116 54,079 -

Total financial assets 41,715 78,389 26,894

Prepayments 3,755 1,586 3,957

Other receivables and advances 1,473 1,134 901

Receivables from the public sector 71 307 247

Total non financial assets 5,299 3,027 5,105

Total trade and other receivables 47,014 81,416 31,999

Changes in impairment write-downs of trade receivables:

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Beginning of the period 2,904 1,709

Write-down recorded 108

(7)

Receivables written off during the period as uncollectible - -

Reversal of write-downs -

(152)

End of the period 3,012 1,550

Changes in impairment write-downs of other receivables:

The recording and reversing of write-downs for impaired receivables were recognized as either other expenses

or other income respectively. The amounts that are charged to the write-downs account are usually written off if

it is likely that the cash would not be collected, i.e. it is highly probable that the debtor will go bankrupt, will be

subject of financial restructurisation or when debtor has significant financial difficulties.

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Beginning of the period - 77

Write-dow n recorded - -

End of the period - 77






21

11. Cash and cash equivalents

Cash and cash equivalents comprise the following:

12. Equity

As at a 31 March 2011 as well as at 31 December 2010 the WSE’s share capital amounted to PLN 41,972

thousand and comprised 41,972,000 shares each of PLN 1,00 par value.

Share capital from before 1996 in the nominal value of PLN 6,000 thousand was revalued with general price

index according to IAS 29 (the cumulative inflation rate index for the period April 1991 - December 1996

amounted to 464.9%).

31.03.2011 31.12.2010 31.03.2010

4 9 9

2,310 1,228 1,686

129,441 106,363 36,922

131,755 107,600 38,617

Cash in hands

Current accounts

Term deposits

Total cash and cash equivalents

Equity attributable to the shareholders of parent

entity31.03.2011 31.12.2010 31.03.2010

Share capital 63,865 63,865 63,865

Other reserves (281) 204 1,024

Retained earnings 498,288 459,774 482,324

Total 561,872 523,843 547,213

Share capital 31.03.2011 31.12.2010 31.03.2010

41 972 000 ordinary shares approved, allocated and

paid up 41,972 41,972 41,972

Revaluation of the share capital using the inflation rate 21,893 21,893 21,893

Total 63,865 63,865 63,865






22

The ownership structure of the share capital and percentage of shares in the parent entity as at 31 March 2011:

Other reserves

Change in the revaluation reserve

ShareholdersNominal value of

shares% in share capital % of votes

Registered shares 15,185 36.18% 53.14%

State Treasury 14,688 35.00% 51.40%

Banks 238 0.57% 0.83%

Brokerage houses 203 0.48% 0.71%

Others 56 0.13% 0.20%

Bearer shares 26,787 63.82% 46.86%

Total 41,972 100% 100%

31.03.2011 31.12.2010 31.03.2010

Revaluation reserve (281) 204 1,024

- revaluation (406) 263 1,094

- deferred tax 125 (59) (70)

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Beginning of the period: 204 1,453

- parent entity (net) (245) 944

- associate (net) 449 509

Additions/decreases (485) (429)

- changes due to revaluation and sales: (551) (579)

- parent entity (net) (346) (788)

- associate (net) (205) 209

- deferred tax, including parent company 66 150

End of period: (281) 1,024

- parent entity (net) (525) 306

- associate (net) 244 718






23

Retained earnings

As required by the Commercial Companies Code, which is binding for the Company, the amounts to be divided

between the shareholders may not exceed the net profit reported for the last financial year plus retained

earnings, less the accumulated losses and amounts transferred to reserves that are established in accordance with

law or the Memorandum of Association and that may not be earmarked for the payment of dividend.

As required by WSE's Memorandum of Association, the supplementary capital is earmarked for covering losses

that may arise on the Company’s operations, and for supplementing the share capital. Transfers from profit are

made to the supplementary capital, which may not be lower than 10% of the profit. The transfers may be

discontinued when the supplementary capital equals a third of the share capital.

The reserves are earmarked for covering investments and other expenses connected with the Company’s

operations. Reserves can be capitalised as share capital.

Supplementary

capitalReserves

Accumulated

profits

Profit for the

periodTotal

31 December 2010 38,023 182,656 144,403 94,692 459,774

Profit for the three month period ended 31

March 2011 attributable to the

shareholders of the parent entity

- - - 38,514 38,514

31 March 2011 38,023 182,656 144,403 133,206 498,288

31 December 2009 38,023 182,508 134,448 100,762 455,741

Allocation of profit for 2009 - 148 100,614 (100,762) -

Dividend payable - - (90,659) - (90,659)

Profit for the year 2010 attributable to the

shareholders of the parent entity - - - 94,692 94,692

31 December 2010 38,023 182,656 144,403 94,692 459,774

31 December 2009 38,023 182,508 134,448 100,762 455,741

Profit for the three month period ended 31

March 2010 attributable to the

shareholders of the parent entity

- - - 26,583 26,583

31 March 2010 38,023 182,508 134,448 127,345 482,324






24

13. Trade and other liabilities

* Other payables as at 31March 2011 comprise among others payables arising from purchase of Platforma Obrotu Energią Elektryczną (poee) amounting PLN 5,440 thousand

** Accruals and deferred income as at 31 March 2011 include among others annual charges invoiced at the beginning of the calendar year as well as accrued costs amounting to PLN 719 thousand. The amount of PLN 14,987 thousand will be recognised as revenues to the end of

2011.

There are no overdue payables.

14. Sales revenue

31.03.2011 31.12.2010 31.03.2010

Trade payables 3,786 6,968 3,561

Payables to associates 146 504 71

Total financial liabilities 3,932 7,472 3,632

Social security and similar payables 3,400 4,275 1,388

Other payables * 6,547 6,421 232

Accruals and deferred income** 16,476 744 14,719

Total other liabilities 26,423 11,440 16,339

Total trade payables and other liabilities 30,355 18,912 19,971

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Revenue from trading 54,786 41,053

Revenue from listing 5,296 4,589

Revenue from information services 8,214 7,899

Other revenue 868 442

Total 69,164 53,983






25

15. Operating expenses

* The Group offers its employees defined contribution plans (Workers’ Pension Fund). The plans are financed from contributions made by

the Group and employees to the retirement fund that is independent of the Group’s financial structure.

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Depreciation and amortization 3,979 3,988

Salaries (1) 9,324 7,471

Other employee costs (2) 2,853 2,295

Rent and other rent related fees 1,678 1,515

Fees and charges 4,195 4,212

External services 7,313 7,321

Other operating expenses 1,741 1,642

Total 31,083 28,444

Salaries (1)

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Wages and salaries 9,311 7,283

Termination payments (non-competition clause) - 69

Employee cost concerning jubilee bonus 13 119

Total 9,324 7,471

Other employee costs (2)

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Social security costs 1,505 1,237

Retirement benefit costs - defined contribution plans * 484 318

Other current service benefits (including: medical services, lunch subsidies,

Social Fund) 864 740

Total 2,853 2,295






26

16. Income tax

As required by the Polish tax regulations, the tax rate applicable to the years 2011 and 2010 is 19%.

The reconciliation of the theoretical amount of tax arising from profit before tax and the statutory tax rate with

the income tax expense shown in the profit and loss is as follows:

17. Contingent positions

The tax authorities may inspect the books of account and tax settlements within 5 years after the end of the year

in which tax declarations were submitted and they may impose additional tax on the Group, together with

penalties and interest.

According to the Management Board of the parent entity there are no indications of any material contingent

liabilities in this respect arising.

18. Contingent and investment liabilities

As at 31 March 2011 and 31 December 2010 the Group had no contingent liabilities and investment

commitments.

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Current income tax 9,082 8,390

Deferred tax (Note 7) (1,161) (2,600)

Total 7,921 5,790

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010


Income tax rate 19% 19%

Income tax at the statutory tax rate 8,839 6,156

Tax effect of: (918) (366)

Non-deductible differences 115 462

Non taxable share in profit of associates (1,033) (828)

Tax charge 7,921 5,790






27

19. Transactions with related parties

Information on transactions with entities related to the State Treasury

Related parties of the Group comprise associates (Krajowy Depozyt Papierów Wartościowych S.A., Centrum

Giełdowe S.A. and INNEX) as well as the State Treasury as a dominant party (holds as at 31 March 2011

35,00% of shares and 51,40% votes in the General Meeting of WSE), parties controlled or co controlled by the

State Treasury and with significant influence of the State Treasury. Additionally to related parties belong

members of key personnel of the WSE.

Information regarding transactions with related parties with State Treasury is not published or sent by the

Ministry of Treasury to parties that belong to State Treasury or to the parties with significant influence of State

Treasury. Therefore the Management Board of WSE disclosed in the hereby financial statement transactions

with those related parties that were indentified based on its best knowledge.

State-controlled entities identified by the parent entity’s Management Board include companies listed on the

Warsaw Stock Exchange (issuers of securities) and the stock exchange members. The Group charges fees to the

related entities listed on WSE for admission to trading, for floating and listing financial instruments. In case of

related parties being stock exchange members the fees for enabling the conclusion of transactions in the stock

exchange market, enabling access to the Exchange's information systems and trading in financial instruments

are charged.

All the transactions with entities related to the State Treasury are concluded in the normal course of business

and are carried out on an arm's length basis.

Individually significant transactions with entities related to the State Treasury in 2011 included revenues and

operating expenses and settlements as at 31 March 2011 with the following companies related to the State

Treasury:

* Including transactions with Biuro Maklerskie BGŻ S.A.

** Including transactions with Dom Maklerski PKO Banku Polskiego S.A.

*** Including transactions with Dom Maklerski Banku Ochrony Środowiska S.A.

Name of the entityReceivables

31.03.2011

Liabilities

31.03.2011

Revenue for the

three-month

period ended

31.03.2011

Operating

expenses for the

three-month

period ended

31.03.2011

BGŻ S.A.* 99 - 289 -

PKO BP S.A.** 826 - 2,419 -

Pow szechny Zakład

Ubezpieczeń S.A. 1 - 76 -

Bank Ochrony Środow iska

S.A.*** 1,236 - 2,964 30

Razem 2,162 - 5,748 30






28

Individual or aggregated influence of other transactions with companies related to the State Treasury has not

been significant.

Individually significant transactions with entities related to the State Treasury in 2010 included revenues and

operating costs, receivables and liabilities as at 31 March 2010 with the following companies related to the

State Treasury:

* Including transactions with Biuro Maklerskie BGŻ S.A.

** Including transactions with Dom Maklerski PKO Banku Polskiego S.A.

*** Including transactions with Dom Maklerski Banku Ochrony Środowiska S.A.

Individual or aggregated influence of other transactions with companies related to State Treasury has not been

significant.

In accordance with the Polish law, the Group is subject to tax obligations. Hence, the Group pays tax to the

State Treasury, which is its related party to 9 November 2010. The principles and regulations binding upon the

Group in this regard are the same as those binding upon other entities which are not associated with the Group.

In accordance with the Decree of the Minister of Finance of 16 March 2010 on fees paid to the Polish Financial

Supervision Authority (PFSA) by supervised entities, the Group incurs costs of fees, paid to the State Treasury

in the amount set by the PFSA. The Group contributes monthly prepayments and the PFSA makes final yearly

settlements before 15 February of the following year. Fees paid for the three-month period ended 31 March

2011 amounted to PLN 3,891 thousand (for the three-month period ended 30 March 2010 PLN 3,960 thousand).


31.03.2010

Liabilities

31.03.2010

Revenue for the

three-month

period ended

31.03.2010

Operating

expenses for the

three-month

period ended

31.03.2010

BGŻ S.A.* 114 - 337 -

PKO BP S.A.** 852 - 2,415 -

Pow szechny Zakład

Ubezpieczeń S.A. - - 6 -

Bank Ochrony Środow iska

S.A.*** 1,490 15 3,439 43

Razem 2,456 15 6,197 43






29

Transactions with associates

In the three-month period ended 31 March 2011 and 31 March 2010 no receivables from related parties were

written off and no impairment write-downs on receivables from related parties were recorded.

The Group did not grant any guarantees or warranties for the benefit of related parties.

The Stock Exchange also concluded transactions with the “Książęca 4“ Housing Cooperative of which it is a

member. Related expenses amounted to PLN 683 thousand in the three-month period ended 31 March 2011. In

the three-month period ended 31 March 2010 related expenses amounted to PLN 766 thousand.

Three month period ended 31 M arch 2011


31.03.2011

Liabilities

31.03.2011

Revenue for the

three-months

period ended

31.03.2011

Operating

expenses for the

three-months

period ended

31.03.2011

Centrum Giełdow e S.A. - 107 - 509

KDPW S.A. 33 - 113 9

Total 33 107 113 518



31.03.2010

Liabilities

31.03.2010

Revenue for the

three-months

period ended

31.03.2010

Operating

expenses for the

three-months

period ended

31.03.2010

Centrum Giełdow e S.A. - 35 - 389

KDPW S.A. 24 1 40 2

Total 24 36 40 391






30

20. Information on remuneration and benefits of key management personnel

The Management Board of parent entity constitutes to key management personnel of the Group.

Remuneration and benefits paid to the members of the Management Board of parent entity

Information on loans advanced to key management personnel

In the three-month periods ended 31 March 2011 and 31 March 2010 no loans were advanced to the key

management personnel of the Group.

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Remuneration 880 332

Other employee benefits 428 137

Unused holiday pay 554 129

Total 1,862 598






31

21. Cash inflows on operating activity

22. Dividend

In April 2011 the Management Board of WSE addressed to the Board to express an opinion regarding

settlement of the profit and payment of dividend amounting to PLN 134,730,120.00 that is 99.8% of the net

profit for 2010. On 6 April 2011 The Board of WSE expressed a positive opinion regarding proposed by the

Management Board profit settlement. Exclusive authority entitlement to decisions regarding profit settlement,

including payment of dividends, is General Meeting.

Note

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010


Total adjustments (9,860) (4,826)

Income tax expense 7,921 5,790

Depreciation of property and equipment 2,963 3,109

Amortization of intangible assets 1,016 879

(Gain) / Loss on sale of property and equipment (1) -

Net movement in provisions for other liabilities and charges 200 218

Financial income on financial asstes held to maturity 5 (1,973)

Financial income on available-for-sale f inancial assets (922) (646)

Dividend income (15) (11)

Interest income on deposits (1,054) (510)

Share in profit of associates (5,438) (4,359)

Change in assets and short-term liabilities

Increase in inventories 8 (8)

Increase in trade and other receivables and prepayments (19,411) (9,113)

Increase in trade and other payables 10,116 6,183

Decrease in employee benefit payables (5,248) (4,385)

Cash generated from operations 28,740 21,782






32

23. Earnings per share

24. Segments of activity

Following the “management approach”, operating segments are reported in accordance with the internal

reporting provided to the parent entity’s Management Board (the chief operating decision-maker), which is

responsible for allocating resources to the reportable segments and assesses their performance.

The operating segments of the Group were identified by the type of products and services, from which a given

operating segment earns revenues.

For the three-month period ended 31 March 2011 and for the three-month period ended 31 March 2010 the

Group was engaged in activities in three main operating segments:

trading (transaction fees dependant on the stock exchange market turnover, stock exchange system

access fees, charges for servicing brokerage application);

listing (annual fees for the listing of securities and one-off charges e.g. charges for admission and

introducing the securities to stock exchange trading);

information services.

For the time being the Group does not analyse costs as divded into individual operating segments. However, it

intends to implement activity based costing model, which will support appropriate segment cost allocation.

Furthermore, the Group does not allocate assets and liabilities to individual segments.

The Group’s other revenues comprise mainly income from training services and rental of space. None of these

segments of operations is subject to the reporting duty. The parent entity’s Management Board does not analyse

data relating to the subsidiaries and associates.

Basic

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Profit attributable to the shareholders of the parent entity 38,514 26,583

Weighted average number of ordinary shares (in thousands) 41,972 41,972

Basic earnings per share (in PLN) 0.92 0.63

Diluted

Three-month

period ended

31.03.2011

Three-month

period ended

31.03.2010

Profit attributable to the shareholders of the parent entity 38,514 26,583

Weighted average number of ordinary shares for diluted earnings per share (in

thousands) 41,972 41,972

Diluted earnings per share (in PLN) 0.92 0.63






33

For the three-month period ended 31 March 2011 and for the three-month period ended 31 March 2010 there

were no sales between the segments.

The Group’s operating segments are concentrated on the territory of Poland.

All Group assets are located in Poland.

The following tables present a reconciliation of the data analysed by the Management Board of the parent entity

with the relevant items shown in these condensed consolidated interim financial statements.

For the three-month period ended 31 March 2011, the segment revenues were as follows:

* Data analysed by the Management Board of WSE

** As presented in Consolidated Statements of Comprehensive Income


WSE * SubsidiariesOther

adjustmentsTotal**

65,635 3,973 (444) 69,164

Trading 51,700 3,086 - 54,786

Listing 5,173 123 - 5,296

Information services 8,189 25 - 8,214

Other 573 739 (444) 868

28,838 2,689 (444) 31,083

36,797 1,284 - 38,081

443 (7) - 436

37,240 1,277 - 38,517

2,557 125 (116) 2,566

- - 5,438 5,438

39,797 1,402 5,322 46,521

Revenue (external transactions)

Segm

ents

Operating expenses

Other operating profit

Operating profit

Net f inancial gain

Share of profit of associates

Profit on sales

Profit before income tax






34

For the three-month period ended 31 March 2010, the segment revenues were as follows:

* Data analyzed by the Management Board of WSE ** As presented in Consolidated Statements of Comprehensive Income

Revenue by geographical region was as follows:

The following tables present a reconciliation of total assets and liabilities as analysed by Management Board to

total assets and liabilities presented in these condensed consolidated interim financial statements.

Assets and liabilities of the company are presented in the assets and liabilities of the Group as at 31 March 2011

as follows:

WSE * SubsidiariesOther

adjustmentsTotal**

51,844 2,239 (100) 53,983

Trading 39,047 2,006 - 41,053

Listing 4,569 20 - 4,589

Information services 7,867 32 - 7,899

Other 361 181 (100) 442

26,577 1,967 (100) 28,444

25,267 272 - 25,539

184 (10) - 174

25,451 262 - 25,713

2,254 72 - 2,326

- - 4,359 4,359

27,705 334 4,359 32,398

Other operating profit

Revenue (external transactions)

Segm

ents

Operating expenses

Profit on sales

Net f inancial gain

Share of profit of associates

Profit before income tax

Operating profit

Three-month

period ended

31.03.2011

Share (%)

Three-month

period ended

31.03.2010

Share (%)

Domestic sales 51,141 73.94% 42,316 78.39%

Export sales 18,023 26.06% 11,667 21.61%

Total 69,164 100.00% 53,983 100.00%

31.03.2011 WSE Subsidiaries Associates*Other

adjustments**Total***

Total assets 468,341 19,266 132,421 (13,903) 606,125

Total liabilities 40,020 3,468 - (204) 43,284






35

* representing the difference between the carrying amount of the associates determined using the equity method and their measurement at

cost net of impairment as analysed by the Management Board

** other adjustments include consolidation eliminations such as: (1) the carrying amount of the parent's investment in each subsidiary and the parent's portion of equity of each subsidiary (2) the dividend declared by KDPW S.A. (the Associate) (3) non-controlling interests in the

profit or loss of consolidated subsidiaries for the reporting period (4) non-controlling interests in the net assets of consolidated subsidiaries

(5) intragroup balances, transactions, income and expenses *** as presented in Consolidated Statement of Financial Position

Assets and liabilities as at 31 March 2010 are presented as follows:

* representing the difference between the carrying amount of the associates determined using the equity method and their measurement at

cost net of impairment as analysed by the Management Board ** other adjustments include consolidation eliminations such as: (1) the carrying amount of the parent's investment in each subsidiary and

the parent's portion of equity of each subsidiary (2) the dividend declared by KDPW S.A. (the Associate) (3) non-controlling interests in the

profit or loss of consolidated subsidiaries for the reporting period (4) non-controlling interests in the net assets of consolidated subsidiaries (5) intragroup balances, transactions, income and expenses

*** as presented in Consolidated Statement of Financial Position

25. Subsequent events

After 31 March 2011, that is after the balance sheet date, there have been no significant events that could have

influenced consolidated financial statement of the Group for the three-month period enden 31 March 2011.

31.03.2010 WSE Subsidiaries Associates*Other

adjustments**Total***

Total assets 402,239 13,551 127,304 34,470 577,564

Total liabilities 27,633 1,922 - 22 29,577

giełda papierów wartościowych w - gpwquarterly report of the giełda papierów wartościowych w...

Documents